Korean won slumps against US dollar on expectations of Fed rate hike
The won-dollar exchange rate is displayed at a dealing room in Hana Bank in Seoul, Monday. Yonhap
The Korean won weakened against the U.S. dollar Tuesday amid renewed expectations that the U.S. Federal Reserve would raise its rates this year.
The won opened at 1,539.4 won per dollar, down 2.4 won from the previous session.
At one point in the morning trading, the won fell to as low as 1,540.1 won per dollar, marking the weakest level since June 8.
Last week, the U.S. Fed held its benchmark interest rate steady in its first rate decision since new Chair Kevin Warsh took office, but at least half of its policymakers anticipated a higher rate later this year.
Although global oil prices have declined on the back of progress in peace talks between the U.S. and Iran, the won has been slipping due to expectations of a stronger U.S. dollar.
Earlier in the day, Korean stocks opened lower over measured optimism about peace negotiations between the United States and Iran.